Overview

  • Country Overview

    Facing the Atlantic Ocean from the westernmost part of Africa's Sahel, Senegal borders Gambia, Guinea, Mali, and Mauritania. One of West Africa's key political and economic hubs, Senegal has a population of about 15.4 million (2016), at least 23% of it concentrated around Dakar, and 40% in other urban areas.

    Political Context

    Senegal has been one of the most stable countries in Africa. Its current President, Macky Sall has been elected in Marche 2012. In 2016, its political system was strengthened by a constitutional referendum that slashed presidential mandates from 7 to 5 years. A fractured opposition contributed to a recent victory in legislative elections in June for President Macky Sall's ruling coalition Benno Bokk Yakaar party, the BBY ("United in Hope" in the widely-spoken Wolof language), with 125 out of 165 seats, despite narrowly failing to get a majority in the popular vote (at 49.5%). In addition to the BBY, 12 political coalition and single parties have seats in the national assembly, including Coalition gagnante Wattu Senegaal (19), Manko Taxawu Sénégal (7), and Parti de l’unité et du rassemblement (3).Parti de l’unité et du rassemblement (3).

    Economic Overview

    After decades of very modest growth, particularly from 2007 to 2013, in 2014 the Government of Senegal adopted the new Plan Senegal Emergent (PSE) designed to help the country get out of a cycle of low-growth and weak poverty reduction. Greater competitiveness, punctual progress in structural reforms, and a favorable external environment all mean economic growth has recently accelerated, reaching about 6.5% in the past 2 years and making Senegal one of the best performing economies in Sub-Saharan Africa. Almost three quarters of the 2015/16 higher growth (compared to the low growth period of 2005–2013) is due to a higher contribution from exports, whose volumes increased by almost 15% and 13% in 2015 and 2016 respectively, underpinned by a more diversified base in agriculture, fishing, and mining. Higher consumption accounted for around 10% of the higher GDP growth, reflecting the positive effect on national income of both a good harvest and improving terms of trade (lower prices for energy and food imports). At a sectoral level, the higher growth in both years was mainly attributed to larger contributions from the agriculture and industrial sectors. In short, Senegal's recent uptick in economic growth reflects stronger international competitiveness, incipient structural changes and, to a lesser extent, favorable exogenous factors, such as positive terms of trade favorable climatic conditions. Other macroeconomic indicators are showing positive trends, although public debt is trending upwards. The fiscal deficit also narrowed in the last few years, to 4.8% of GDP in 2015 and 4.2% in 2016. It is expected to settle at 3% in 2018, thus complying with ECOWAS's convergence commitment before the 2019 deadline.

    Medium-Term Outlook

    Senegal's medium-term economic prospects are positive for as long as its new structural reforms are sustained and deepened, and the external environment remains benign. Economic growth is projected at reaching 6.8% and 6.9% in 2018, and the PSE economic blueprint for becoming a middle-income country targets even more ambitious growth rates of between 7.6% and 8.3% from 2016 to 2018. To accelerate Senegal will need all its drivers of economic growth pointing in the same direction at the same time. This means more reforms to solve critical bottlenecks in the country's productivity and competitiveness; sustaining a credible fiscal policy and avoiding currency overvaluation; and benefiting from a positive international environment. 

    Social Context

    Although there is a lack of updated data, recent projections indicate that progress in poverty reduction has been rather modest, and that Senegal continues to display high rates of monetary poverty. Simulations based on the evolution of per capita GDP suggest that poverty may have decreased by 3% to 6% from 2011 to 2015, driven by improvements in rural areas and agricultural expansion. Data on employment suggest that some reallocation out of agriculture took place in rural areas, which might have further contributed to poverty reduction. But non-monetary evidence suggests that inequality has stagnated. Social indicators and outcomes have been generally positive, although slow and uneven.

    Last Updated: Oct 10, 2017

  • World Bank Group Engagement in Senegal

    The Country Partnership Strategy (CPS) for 2013–2017 was put together by the International Development Association (IDA), International Finance Corporation (IFC), and Multilateral Investment Guarantee Agency (MIGA). It is fully aligned with the Government of Senegal's strategy and the priorities it identified in the Emerging Senegal Plan (PSE). The World Bank Group’s support is anchored in building resilience through a governance framework that accelerates inclusive growth and employment, and improves service delivery.

    Senegal's active portfolio comprises 19 IDA projects worth a total of $1,4 billion, and 9 IDA regional operations worth $358 million. The largest shares of it are dedicated to Transport, Urban, and Infrastructure (36%); Agriculture, Sustainable Development, and Climate Change (17%); Education, Health, and Social Protection (15%); Energy and Gas (13%); and Water and Sanitation (7%).

    The International Finance Corporation’s (IFC) current committed portfolio in Senegal was $155.4 million, while the Multilateral Investment Guarantee Agency’s (MIGA) gross exposure in Senegal was $106 million. 

    Last Updated: Oct 10, 2017

  • The World Bank Group has contributed to Senegal’s development performance in the following sectors:

    Water and Sanitation

    The World Bank has supported Senegal for nearly two decades in the water and sanitation sector through three successive projects: the Water Sector Project, the Long Term Water Sector Project (PELT), the Water and Sanitation Millennium Project (PEPAM), and the ongoing Senegal Urban Water and Sanitation Project. Interventions to date have yielded the following results: In urban areas, some 206,160 people have gained access to piped water and 82,260 to improved sanitation. As of April 2017, about 95,000 more people have gained access to improved water services under the new project. About 13% of the credit has been disbursed, which is consistent with initial projections. In rural areas, some 172,370 people have gained access to safe drinking water, while 193,730 additional people have gained access to improved sanitation services.

    Agriculture

    The West Africa Agricultural Productivity Program (WAAPP), a regional project involving 13 countries, has yielded the following results in Senegal: As many as 423,000 agricultural producers and agro-processors have benefited from the development, dissemination, and adoption of improved agricultural technologies from 2012 to 2015, of which 38% are women. WAAPP also enabled the amount of agricultural research needed to generate 14 new, high-yielding, early maturing, drought-resistant varieties of millet, sorghum, and cowpeas for climate-smart agriculture. It upgraded core facilities, equipment, and the human capacity of the National Center of Specialization.

    WAAPP succeeded in implementing an important fellowship program for young agricultural researchers, resulting in 170 fellowships, of which 99 are for PhDs and 71 for Masters degrees. The program seeks to develop the scientific careers of young researchers, fill gaps in some research field areas, and replace researchers who are retiring.

    An E-subsidy platform was also developed to increase efficiency and transparency in the distribution of subsidized inputs, and about 800,000 farmers have been registered with it so far out of a goal of one million.

    Social Protection

    With the help of the Senegal Safety Net project, the Governement of Senegal has registered 442 019 households in the Unique National Registry (about 30 percent of the population), and the National Cash Transfer Program (Programme National de Bourses de Sécurité Familiale - PNBSF) reached its final target of about 300 000 beneficiary households (about 20 percent of the population). Senegal Safety Net project, the Governement of Senegal has registered 442 019 households in the Unique National Registry (about 30 percent of the population), and the National Cash Transfer Program (Programme National de Bourses de Sécurité Familiale - PNBSF) reached its final target of about 300 000 beneficiary households (about 20 percent of the population). Senegal Safety Net project, the Government of Senegal has registered 442,019 households in the Unique National Registry (about 30% of the population), and the National Cash Transfer Program (Programme National de Bourses de Sécurité Familiale, PNBSF) reached its final target of about 300 000 beneficiary households (about 20 percent of the population). Senegal Safety Net project, the Government of Senegal has registered 442 019 households in the Unique National Registry (about 30 percent of the population), and the National Cash Transfer Program (Programme National de Bourses de Sécurité Familiale, PNBSF) reached its final target of about 300 000 beneficiary households (about 20 percent of the population). Senegal Safety Net project, the Government of Senegal has registered 442,019 households in the Unique National Registry (about 30% of the population), and the National Cash Transfer Program (Programme National de Bourses de Sécurité Familiale - PNBSF) reached its final target of about 300 000 beneficiary households (about 20 percent of the population).

    Last Updated: Oct 10, 2017

  • Most bilateral and multilateral development agencies have an active presence in Senegal. Considerable progress has been made in recent years in order to streamline development assistance in Senegal, as consistent with the principles articulated in the Paris Declaration and the Accra Agenda.

    Last Updated: Oct 10, 2017

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Additional Resources

Country Office Contacts

Main Office Contact
+221-33-859-41-00
Dakar
Mademba Ndiaye
Sr. Communications Officer
Bureau de la Banque mondiale
Corniche Ouest X Rue Léon Gontran Damas
Dakar, Senegal
+221-33-859-4140
mademba@worldbank.org
Washington
Ivan Velev
Country Program Coordinator
1818 H Street, NW
Washington, DC 20433
+1-202-473-0814
Ivelev@worldbank.org